Creating a Winning E-Business Second Edition Marketing Your E-Business Chapter 6

Creating a Winning E-Business Second Edition, Chapter 6 2 Learning Objectives §Describe the marketing mix §Explain the importance of branding §Describe primary and secondary market research §Create a marketing plan §Identify marketing tools

Creating a Winning E-Business Second Edition, Chapter 6 3 Marketing Mix §Marketing is process of developing mutually satisfying relationships with customers §Four Ps in the classical marketing mix –Product –Place –Price –Promotion

Creating a Winning E-Business Second Edition, Chapter 6 4 Marketing Mix (continued)

Creating a Winning E-Business Second Edition, Chapter 6 5 Marketing Mix (continued) §Marketing mix from customer’s viewpoint –Four Cs marketing mix model Customer needs and wants Convenience Communication Cost to customer

Creating a Winning E-Business Second Edition, Chapter 6 6 Marketing Mix (continued)

Creating a Winning E-Business Second Edition, Chapter 6 7 Building Your Brand §A brand –Incorporates customers’ perceptions of and experiences with a business –Combination of name, logo, and design that identifies a business’s products and services in consumers’ minds –Trusted brand can drive sales

Creating a Winning E-Business Second Edition, Chapter 6 8 Building Your Brand (continued) §Define how you want products/services perceived by customers –Understand core elements of e-business –Differentiate core elements from competitors’ core elements –Identify how products/services meet customers’ needs –Decide how to convince customers that products/services best meet their needs

Creating a Winning E-Business Second Edition, Chapter 6 9 Building Your Brand (continued) §Discover words, phrases, images to put best public “face” on business §Brand names –Simple –Easy to remember, spell, and understand –Have “snap” –May be a proper name or use personification Coca Cola, Dell Corporation

Creating a Winning E-Business Second Edition, Chapter 6 10 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 11 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 12 Building Your Brand (continued) §Domain name (URL) and branding –Address associated with a Web page –Can be used to help build a brand –Single- and common-word domain names largely already taken Office.com, Business.com May be too generic for successful branding

Creating a Winning E-Business Second Edition, Chapter 6 13 Building Your Brand (continued) §Use creative “brainstorming” to develop brand name –Create list of words or phrases and combine them in creative ways –Ask for help from friends, family, advisors §Pay for professional help in developing brand name –The Namestormers, NameLab

Creating a Winning E-Business Second Edition, Chapter 6 14 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 15 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 16 Building Your Brand (continued) §Domain name (URL) registration –Managed by ICANN for the U.S. Dept. of Commerce –Top-level domains identify the general category in which a domain name is registered

Creating a Winning E-Business Second Edition, Chapter 6 17 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 18 Building Your Brand (continued) §Domain name (URL) registration (continued) –ICANN contracts with accredited registrars –Accredited registrars process requests for new domain names Network Solutions GoDaddy Register.com

Creating a Winning E-Business Second Edition, Chapter 6 19 Building Your Brand (continued)

Creating a Winning E-Business Second Edition, Chapter 6 20 Building Your Brand (continued) §Brand names, domain names, trademarks are becoming more interchangeable –Make certain a URL does not infringe on the brand or trademark of an existing company

Creating a Winning E-Business Second Edition, Chapter 6 21 Market Research §Collecting and analyzing data to make business decisions –Primary research Uses quantitative or qualitative methods to physically collect and analyze data and then publish the results –Market research company examples NPD Group Forrester

Creating a Winning E-Business Second Edition, Chapter 6 22 Market Research (continued) §Secondary research –Collects data from secondary sources who have already performed the primary research –Resources for secondary research Reports published by market research companies Industry white papers Government databases Trade associations Professional journals

Creating a Winning E-Business Second Edition, Chapter 6 23 Creating a Marketing Plan §Provides the details for the marketplace analysis section of a business plan §Plan elements –Executive Summary –Situational Analysis –Objectives, Strategies, and Tactics –Budget and Performance Measures

Creating a Winning E-Business Second Edition, Chapter 6 24 Creating a Marketing Plan (continued) §Executive Summary section –Summarizes overall plan –One to three pages –Should be written last

Creating a Winning E-Business Second Edition, Chapter 6 25 Creating a Marketing Plan (continued) §Situational Analysis section –Explains what is known about the marketplace Market size Market segments Target market Competition Products and services overview

Creating a Winning E-Business Second Edition, Chapter 6 26 Creating a Marketing Plan (continued) §Objectives, Strategies, and Tactics section –Objectives describe marketing mission –Strategies identify what is to be accomplished –Tactics detail how it will be done

Creating a Winning E-Business Second Edition, Chapter 6 27 Creating a Marketing Plan (continued) §Budget and Performance Measures section –A budget estimates the cost of the plan –Performance measures evaluate the results of plan implementation

Creating a Winning E-Business Second Edition, Chapter 6 28 Marketing Tools (continued) §Search engine optimization (SEO) –Build Web pages that are easy to index by search engines Write clear and on-topic Web page text Use descriptive page titles Avoid frames and dynamic content Use text navigation links Arrange for relevant inbound links Use meta tags

Creating a Winning E-Business Second Edition, Chapter 6 29 Marketing Tools (continued)

Creating a Winning E-Business Second Edition, Chapter 6 30 Marketing Tools (continued) §Public relations effort –Establishes and maintains a company’s public image –Timely press release is a cost-effective marketing tool –Good idea to work with a PR professional

Creating a Winning E-Business Second Edition, Chapter 6 31 Marketing Tools (continued) §Online advertising (continued) –Rich media ads Interactive elements, Flash technologies, streaming media Shoshkele and streaming media ads §Permission-based marketing –Opt-in or newsletters –Double opt-in process verifies recipient voluntarily receives messages

Creating a Winning E-Business Second Edition, Chapter 6 32 Marketing Tools (continued) §Online advertising (continued) –Search tool or portal advertising Featured placement at other Web sites Pay-per-click search tool ads –Featured placement in search results lists –Featured placement on same page as search results list –Based on relevant search keywords –Yahoo!, Search Marketing, and goClick.com

Creating a Winning E-Business Second Edition, Chapter 6 33 Marketing Tools (continued) §Link exchanges –Exchange links with Web sites to boost link popularity –Drive new customers to Web site and improve SEO –Beware of link farms and link stuffing §Newsgroups and Web-based forums –Participation in can indirectly promote a business

Creating a Winning E-Business Second Edition, Chapter 6 34 Marketing Tools (continued) §Word of mouth (viral marketing) –Electronic word of mouth exploits the network effect and viral marketing –Business blogs Put a “human face” on a business Way to keep tabs on what customers, potential customers, and competitors are thinking and saying Provide valuable feedback on products and services

Creating a Winning E-Business Second Edition, Chapter 6 35 Marketing Tools (continued) §RSS and Podcasting –Syndication of Web page content or audio using XML technologies §Affiliate programs –Arrangement in which an e-business pays a fee or commission when a customer clicks through from another site and makes a purchase

Creating a Winning E-Business Second Edition, Chapter 6 36 Marketing Tools (continued) §Web rings –A group of similar e-businesses linked together in a circular “chain” –Visitor can click through from site to site in the chain §Awards –Can give a startup e-business more credibility in the marketplace

Creating a Winning E-Business Second Edition, Chapter 6 37 Chapter Summary §Marketing is the process of developing mutually satisfying relationships with customers §Classic marketing mix model consists of the Four Ps: product, place, promotion, and price §A brand is a name or logo that identifies a product or service in consumers’ minds §A domain name (URL) can be a tool for building a brand

Creating a Winning E-Business Second Edition, Chapter 6 38 Chapter Summary (continued) §Market research involves collecting and analyzing data using primary or secondary research §A marketing plan provides details for the marketplace analysis portion of a business plan –Executive Summary –Situational Analysis –Objectives, Strategies, Tactics –Budget and Performance Measures

Creating a Winning E-Business Second Edition, Chapter 6 39 Chapter Summary (continued) §Online marketing tools –Search engine optimization (SEO) –Online ads and opt-in /newsletters –Search tool and portal advertising –Link exchanges and online forums –Business blogs, RSS feeds, affiliate programs –Web rings §Traditional marketing tools –Radio, TV, print ads, public relations